The Broke and the Beautiful: Going Broke Edition

This week on The Broke and the Beautiful, it’s a sports bonanza. A director documents how sports stars go broke, Michael Vick has spent some money, Curt Schilling might need to sell a bloody sock, and much, much more!

Associated Press

We’ve been privy to the manysportsstars who’ve fouled up in bankruptcy, and we think director Billy Corben has been studying our game. Corben’s new documentary, “Broke,” details how so many professional athletes end up in bankruptcy. Athletes who lose money don’t always just go on massive spending sprees, Bankruptcy Beat noted Monday. Sometimes, they don’t know how to handle their money properly, or they can get taken in by fraudsters claiming to be able to make them even richer.

Associated Press

Bernie Kosar

Corben told Bankruptcy Beat that a bankruptcy filing by former Cleveland Browns star Bernie Kosar inspired him to make the documentary, which aired on ESPN Tuesday and will air again Saturday evening. The news of Kosar’s bankruptcy, which came partially because of the downturn in the real-estate market, shocked Corben.

“Bernie played 12 seasons in the NFL—over three times the length of the average career,” Corben said. “He was also known for being more financially successful in business after he retired” from his lucrative career.”

Curt Schilling is selling his Medfield, Mass., mansion for $3.45 million, but that isn’t the only thing the former Boston Red Sox pitcher is getting rid of. Schilling might have to sell off his bloody sock to pay creditors in his videogame company’s bankruptcy case. According to the Boston Globe, the famed sock, worn by Schilling in 2004’s MLB post-season, could garner $25,000 if it steps up to auction. The videogame company, 38 Studios LLC, filed for Chapter 7 bankruptcy in June, and it hasn’t exactlybeen smooth sailing since.

Reuters

Warren Sapp

Schilling isn’t the only famous ex-professional athlete selling his house. Former NFL player Warren Sapp is putting his Orlando-area abode up for sale. As the Orlando Sentinel reported, Sapp’s 10,000-square-foot house, which cost $7 million to build in 2005, is getting auctioned in early November. And although Sapp’s Chapter 7 case was dismissed late last month, the sale is still subject to court approval. Maybe Sapp won’t have a home movie theater, boathouse or water slide at his footsteps anymore, but at least he’s got something else to celebrate: his nomination for the Pro Football Hall of Fame.

Associated Press

John L. Smith

Arkansas football coach John L. Smith filed for bankruptcy last month because of debt from Kentucky land deals, and now he’s detailed exactly how much he owes. According to court documents (h/t USA Today), Smith has only $1.3 million in assets but has $40.7 in debt, $15 million of which is owed to BB&T. A business in Kentucky called Terra Springs LLC, holds a $20 million claim. Smith also owes money to American Express and First Citizens Bank, among others.

About Bankruptcy Beat

From Dow Jones Daily Bankruptcy Review, exclusive coverage of corporate bankruptcies, companies headed for trouble and the latest trends in bankruptcy law, distressed investing and corporate restructuring. Lead writer Pat Fitzgerald and Daily Bankruptcy Review reporters in Washington, New York and Wilmington, Del., provide insight into the big cases, who’s next to fall and what’s making news across the bankruptcy market.